Though Americans are spending and the Commerce Department reported earlier this week that US retail sales enjoyed their strongest two-month stretch in two years, all is not well with Macy’s.
The retailer is competing with off-price brands like T.J. Maxx—which reported strong same-store sales in Q3—and Nordstrom Rack. In an effort to expand its own outlet channels, Macy's announced to analysts plans to test 45 off-price Backstage units at its stores to make some extra cash, Retail Dive reports.
Macy’s CFO Karen Hoguet says Macy’s Backstage unit, launched last year, is doing well and improving the productivity of its base stores, so that’s where the firm is putting its focus. The retailer is also continuing with its plan to close 100 full-line stores by early 2017, and these pop-up units may help soften excess inventory. [RD]
